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Sales Commissions

  • I have no idea why Noah's post was quoted, disregard that.

    AlphaOmega said... im sorry i was confusing...your "Superbowl" was the Redskins losing since you know that the Ravens cant win it all.

    TheHugeManatee

  • TheHugeManatee said...

    I have no idea why Noah's post was quoted, disregard that.

    I thought you were yelling at him

    7erps

  • My group is completely rebuilding our salary structure for sales reps at my company(11 figure revenues) over the next few months, so this is kind of right up my alley. Commission %s vary a ridiculous amount based on the product. We have guys who get like 10bp on gross and others who get 2000. Obviously there are variances with base pay and benefits. Generally, if the salesman has a lot of control over the price of goods/services, it is based on margin. We have one guy who gets 5bp of total sales on top of a base/bonus. I was skimming some payroll sheets and figured it was a typo. That was a big number. I guess the point is, there is no answer to your question without knowing more details. Its more like, we figure out how much he should get paid on average, and run a regression based on product and location to figure out the base/bonus/quota/commission figures. It is by far the most interesting compensation question for a stat nerd.

    Titanterp

  • In home improvement(roofing, siding, ect.) they make 10% if they sell to the price sheet and 50% of everything over that.

    sniper_terp

  • I worked at CDWG (woof) for like 6 months out of college and commission was based on GP. Started at 4% of GP up to 50% of goal, then like 8% up to 100% of goal, and ultimately up to I think 18% after 100% of GP goal met. There was one guy who had been there a while and would just sell storage to the FBI, literally nothing else. End of FY he would make anywhere from $250k-$400k between August/Sept. Everyone else never came close to their goals which were inflated from pre-continuing resolution and cut back times.

    7erps

  • thanks everyone for the responses. helpful

    goterpss

  • enterprise software sales is secretively one of the most lucrative jobs on the planet. the goal for people in that industry is to save enough after 10 years and retire.

    RDurr

  • RDurr said...

    enterprise software sales is secretively one of the most lucrative jobs on the planet. the goal for people in that industry is to save enough after 10 years and retire.

    yup twocents

    AlphaOmega said... im sorry i was confusing...your "Superbowl" was the Redskins losing since you know that the Ravens cant win it all.

    TheHugeManatee

  • at CFC i got 20-100 bps of the notional. one of the lowest in the industry at the time but they did have a solid infrastructure and support/training for someone w/ no exp

    NYCTerp is now OCTerp

    NYCTerp05

  • What industry are you looking at? I'd find an industry you want to work in and then just go talk to whoever's in charge of hiring. You'll receive a rosy outlook on things, but then you have a starting point to do your more realistic research.

    tecmoHOOperbowl

  • goterpss said...

    What's a standard sales commission that a guy working in institutional sales in the real world make? Say someone who sells construction materials to a commercial builder? Trying to make a point to a co-worker.

    Manufactured items usually have a smaller percentage ie 1-3% but that could be upped through a graduated gross sales number, ie the higher the the gross sale the higher the percentage. Also common in building products selling are SPIFFS, ie targeted products like obsolete inventory, which need to be moved and which earn a "bonus" commission.

    Considering that 20% of a sales force generates 80% of sales on average, the higher the commission as a function of income the higher the income for producers.

    tagterp